NEWTOWN, Pa., July 12, 2024 /PRNewswire/ — Edelson Lechtzin LLP, a leading class action law firm, reminds investors about the impending deadline to seek appointment as lead plaintiff in the securities fraud class action lawsuit against SeaStar Medical Holding Corporation (NASDAQ: ICU). If you purchased SeaStar Medical Holding Corporation common stock between October 31, 2022, and March 26, 2024, inclusive (the “Class Period”) and lost more than $10,000 on your investment, you should consider seeking a leadership position in this case.
To be considered for a lead plaintiff role, a SeaStar investor must file a motion in the U.S. District Court for the District of Colorado, no later than September 6, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses, at 844-696-7492 or by e-mail at [email protected]. You can also submit your trading information online HERE.
Background on SeaStar Medical Holding Corporation.
Headquartered in Denver, Colorado, SeaStar is a medical device company that develops Selective Cytopheretic Device (SCD) therapies to reduce hyperinflammation’s impact on vital organs and treat infections.
The Securities Fraud Claims
On April 22, 2022, SeaStar Medical, Inc. (“Legacy SeaStar”) announced a merger agreement with a SPAC. The new entity, SeaStar Medical Holding Corporation, would retain Legacy SeaStar’s management team, and all existing shares of Legacy SeaStar would convert to Class A Common Stock of the new company.
On July 20, 2022, Legacy SeaStar announced that it had applied under the HDE (the “HDE Application”) to the FDA for the use of Legacy SeaStar’s SCD for critically ill children with acute kidney injury (“AKI”).
Throughout the Class Period, the Complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business and operations, including that: (i) Legacy SeaStar and SeaStar had deficient compliance controls and procedures related to the HDE Application; (ii) there were deficiencies with the HDE Application, the FDA was unlikely to approve the HDE Application in its present form, and the SCD’s regulatory prospects were overstated; (iii) the Company had downplayed the scope and severity of deficiencies in its financial controls and procedures while overstating their efforts to remediate the same; (iv) SeaStar had failed to properly account for the classification of certain outstanding warrants and the Prepaid Forward Agreement; (v) as a result, SeaStar was likely to restate one or more of its previously issued financial statements; and (vi) SeaStar’s post-Merger business and financial prospects were overstated.
On May 9, 2023, SeaStar’s HDE application for pediatric SCD was rejected by the FDA. On this news, SeaStar’s stock price fell $0.77 per share, or 39.69%, to close at $1.17 per share on May 10, 2023.
SeaStar then announced a restatement of its financial statements for the fiscal year ended December 31, 2022, and for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023. The restatement affects the accounting of warrants and the Prepaid Forward Agreement due to the complex financial instruments used to take the Company public. On this news, SeaStar’s stock price fell approximately $0.04 per share, or 4.84%, to close at approximately $0.71 per share on March 27, 2024.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
SOURCE Edelson Lechtzin LLP